Rita Jorgensen, a victim of investment fraud, recounting her experience to a conference of law enforcement agents who investigate financial crimes. / M. Kate Prince / The Tennessean

Written by

Richel Albright

The Tennessean

In a matter of months, Rita Jorgensen saw $750,000 that she had entrusted to her friend and investment adviser, Gordon Grigg, vanish.

She is not alone. About 100 such investor frauds have surfaced in the United States every month for the past two years.

Jorgensen, who lives in Franklin, said the loss of her savings, which came from a divorce settlement, occurred over a period of only eight months and included her daughter’s college tuition.

Accompanied by two other investment fraud victims, she told her story to about 200 local, state and federal law enforcement officers and financial regulators at Vanderbilt University School of Law on Thursday.

She said she missed the warning signs.

“It’s been really difficult,” she said, “and I think also I was in my first year at law school, plus it was at the time of Bernie Madoff. In fact, when (U.S.) Judge (Aleta) Trauger sentenced him, she said he was like a little Bernie Madoff with a vicious twist because he used religion.”

“The Impact of Investor Fraud on Victims: Victims’ Rights and Support” panel was moderated by Timothy Heaphy, U.S. attorney for the Western District of Virginia.

Federal investigators say the problem is almost epidemic but that prosecutions and jail time are increasing as well.

“Remarkably, of the 800 defendants who have been prosecuted in the last two years, 97 percent of those defendants received jail time, which is pretty unusual in white-collar cases, with a large majority of those receiving over 10 years in prison,” said Anne Tompkins, U.S. attorney with the Western District of North Carolina.

Mary Martin, who was victimized by Vallett, participated on the panel and spoke about her experience and losses — not just financially, but also the loss of her relationships with the Vallett family and her own father.